Frontline Stock Analysis, Valuation (NYSE:FRO)

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$4.72 $0.02 (0.43%) FRO stock closing price May 18, 2018 (Closing)
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Frontline
Updated on : May 18, 2018
previous close
FRO 4.7 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Transportation-Shipping
Sector :
Transportation
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.7%
Operating Profit
Operating Margin:
-12.9%
Sector Average:
8.1%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
1.88B
Debt/Equity Ratio:
 1.58
Compared to the industry
Cash Flow
Operating cash flow:
$10.1M
Net Income:
-$248.4M
Dividend Yield
FRO dividend yield:
6.36%
PROS      CONS
High Dividend Yield
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
FRO PS :
1.2
Industry PS :
1.5
Sector:   Transportation.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-1.9%
Return on Equity:
-18.7%
Free Cash Flow Margin:
2.3%
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Frontline Stock Analysis

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Investors can watch the Amigobulls Frontline stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for FRO stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Frontline Ltd. Stock Rating 1.7/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for FRO stock analysis. Frontline valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our Frontline stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy FRO stock?

  • Frontline is a dividend paying stock with a high yield of 6.36%.

Should you sell FRO stock?

  • Sales declined by -0.7% annually over the last 5 years.
  • Frontline reported an average operating margin of -12.9% over the Last Twelve Months (LTM).
  • Frontline posted an average Net loss of -41% in the last twelve months.
  • Frontline has a debt/equity ratio of  1.58, which is worse than the average in the Transportation sector.
  • PE ratio is meaningless for FRO stock as the company has losses.
  • Frontline's negative ROIC of -1.9% indicates operational inefficiency.
  • Frontline has a negative return on equity of -18.7%. This indicates that the firm is inefficient at generating profits.

Comments on this video and Frontline stock

Amigobulls Frontline stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of FRO stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, Frontline revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.